What do i have to do after i enter a contribution in traditional IRA to lower my tax?

avo · ‎June 7, 2019

we want to contribute $500 to the traditional IRA to help bring the tax owed down. i input the contribution number into turbotax. but what do i have to do next? do i go to a bank or somewhere to open an IRA account? have to do it by apr 17? then report it to IRS? how does IRS know when i open my account? i'm not sure about next steps. thanks.

Marketstar · ‎June 7, 2019

You will need to go to a financial institution such as a bank, brokerage firm, or mutual fund company such as Vanguard or Fidelity and open and fund an IRA account by April 17, 2018.

You report the transaction to the IRS by entering your contribution into TurboTax and need not otherwise report the account or document it until such time as the IRS asks for it.

View solution in original post

avo · ‎June 7, 2019

thanks for the advice.

Marketstar · ‎June 7, 2019

Your welcome and thanks for choosing TurboTax!

What do i have to do after i enter a contribution in traditional IRA to lower my tax?

Retirement tax questions

Retirement tax questions

Retirement tax questions